Kmart's layaway program is multi-faceted. There is an 8-week program for online and in-store purchases, and there is a 12-week program for in-store purchases of $300 or more. Each program requires payments every two weeks and both come with service and cancellation fees. Down Payment: $10.

what's that again? Kmart's program serves as a reminder. Pick your items, pay 10 percent of the cost plus a $5 setup fee on the spot; your stuff comes off the selling floor and is stored (laid away) for you; pay off the rest in regular (interest-free) installments over eight weeks, and the goods are yours to take home.

Layaway allows a customer to put a deposit on an item - like furniture or a computer - that the seller holds, typically in a store. The customer makes installment payments on it over time and can then pick up the item once the balance has been paid in full. Layaway originated during the Great Depression.

Layaway programs are generally geared toward shoppers with limited income who may struggle to pay for purchases in one lump sum. Created during the Great Depression of the 1930s, layaway programs declined during the 1980s as the ubiquity of credit cards decreased their utility.

You usually don't have to pay interest on layaway payments, which is a big advantage over alternatives, such as credit cards, which charge average interest rates of 14% to 15% (though frequently higher).

With a BNPL plan, you get the items right away. You'll typically need to make your first payment toward the plan as a deposit, but there's no waiting period to get the merchandise as there is with a layaway plan. On the other hand, a layaway plan can give you more time to pay than a BNPL loan can.

For example, let's assume Bob wants to buy a $50 food processor at a Big Store, but does not have enough money. Bob decides to use the Big Store's layaway plan, instead. He deposits $10 with Big Store and they agree to hold the item for 10 days.

Layaway also helps prevent people from overspending, which is something that is easy to do with credit cards. Always make sure you read the fine print and understand the terms, fees, repayment period, and cancellation policy of any store's layaway program before you enter a contract.

layaway | Business English a method of buying goods in which a large deposit (= payment of part of the total) is made so that a store will keep the goods until the full price can be paid: put sth on layaway She put a couch on layaway.

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• The Benefits of Layaway Plans.
• You Can Spread out Your Payments.
• You Avoid Credit Card Interest and Debt.
• You Can Beat the Holiday Shopping Rush.
• The Problems With Layaway Programs.
• The Fees Can Add up.
• It's Easy to Overspend.
• You Could Miss out on Bigger Bargains.

Disadvantages

• When you use layaway, you can only take the merchandise once you've paid the entire balance.
• You may also be required to spend a minimum amount to use layaway.
• Certain items may be excluded from layaway purchases.
• Layaway plans may only be available for purchases made in stores, not online.

Layaway programs come with strict payment terms, and customers must make scheduled payments within the agreed time frame. Customers who fail to comply with these terms risk losing their items and incurring a cancellation fee.